�BCL, Tati will find suitors�
Chakalisa Dube | Friday October 14, 2016 17:04
Both mines, which fall under the BCL Group, were placed under provisional liquidation last week, a development that shocked many and drew widespread criticism.
The government enjoys 100 percent shareholding of the BCL Group and has indicated that cash flow problems led to voluntary liquidation of the mine. BCL Ltd reportedly owes billions of Pula to creditors.
BCL Mine, according to government, needed P8 billion to stay in operation, an amount government said it could not commit to without sabotaging other national economic needs.
This week, government announced that the newly appointed liquidator, Nigel Dixon-Warren, would be looking for suitors for the group, among his numerous other duties.
Government hopes a new investor will come in and rescue the group, while enabling the state to reduce its equity and thus, its exposure to the base metals entities.
Botswana Chamber of Mines CEO, Charles Siwawa yesterday told Mmegi that he was confident both BCL and Tati remained attractive to investors.
“I have no doubt that the mines will generate significant interest,” he said.
“From the presentation made by the BCL Group, TNMC and BCL have a combined lifespan of 25 years which is why I believe that they will generate much interest.
“From the information we have, mines under the BCL group are still profitable.
“The BCL group is not a dead horse as assumed by many. It is just that it has a cash flow problem that need to be dealt with.”
Speaking on the events leading to the liquidation, Siwawa said government as the sole shareholder of the group had limited options with regards to mitigating against the cash flow challenges at BCL and TNMC.
According to him, it was a wise move for government to place the two mines under voluntary liquidation.
“If the government had decided to sit back, creditors would have moved in and applied for liquidation and the implications could have been more far reaching than voluntary liquidation,” said Siwawa.
Siwawa acknowledged that it would also not have been wise for government to continue pumping billions into the BCL group while there were other competing priorities.
“The government’s reluctance to fund BCL might have also been fuelled by the fact that other government parastatals are struggling and are lining up for funds (from government) to ensure their survival,” BCM CEO said.